“What will become of all of those Dippin’ Dots?” – Jeff
Markets were pretty tame again on Thursday.
And today we’re talking Warner Bros. putting movie theaters in a body bag.
The show must go on
“Look how they massacred my boy.” – movie theater investors
Warner Bros. announced that it is planning to launch all of its 2021 films (because only cretins call them movies) in theaters… and on HBO Max… simultaneously. As you’d expect, shares of AMC and Cinemark crashed, 16% and 22%, respectively. Cheer up, guys… it could be worse, you could be MoviePass.
AT&T owns both Warner Bros. and HBO Max… so anyone who has a subscription to the streaming service will get access to all 17 movies coming out, starting with ‘Wonder Woman’ on Christmas Day.
There is one caveat, though, the movies will revert back to their original distribution agreements after 30 days of being on the streaming service… which is like 12 years in ‘rona times.
Warner Bros. isn’t the first production company to go straight to DVD streaming. But it is the first to offer it as part of its subscription.
Universal released ‘Trolls World Tour’ during the pandemic as an on-demand pay-per-view. Similarly, Disney launched ‘Mulan’ for $30 a pop. Warner Bros. and HBO Max appear to be taking a page out of Reed Hastings’ (read: Netflix’s) playbook and thinking long-term.
The bottom line…
Movie theaters are in rough shape. Production companies have been doing all they can to cut down on the duration of exclusive distribution rights. Universal already shortened the amount of time it allows AMC to show its movies before it moves its films to the small screen from 90 to 17 days.
With this latest news, the trend isn’t showing any signs of slowing down. So how are movie theaters dealing?
Well, AMC filed paperwork to sell 200M Class A shares in hopes of raising more than its current entire market capitalization. Bold move, Cotton.
Big news for Boeing, as the the airplane manufacturer finally got the monkey off its back and closed a big order for the 737 Max after discount airliner Ryanair placed the order of 75 planes. The company has received smaller orders, most recently in August, but this is the first time it is going to push double digit air trains.
It’s been a sh*tshow for Boeing after several of its planes crashed in 2019, leading to the company grounding its 737 MAX airliners, and losing hundreds of orders for the model…and that was before ‘rona boi sucked the life out of any potential demand for travel.
Boeing currently has 4k orders that are in jeopardy of being cancelled should the airlines fail to bounce back.
OPEC+, which sounds a lot like OPEC’s premium subscription service, was able to compromise following almost a week of negotiations.
So what’s the deal? 500k extra barrels per day flooding the market come January. The Organization of Petroleum Exporting Countries has also agreed to meet monthly to discuss output, which is much more often than usual.
A beef between Saudi Arabia and the UAE surprised OPEC watchers (apparently that’s a thing) and slowed the talks. The UAE has been investing heavily in oil infrastructure and wants to pump more. Meanwhile, Saudi Arabian leaders warned “don’t make me get me the bone saw.”
Oil prices rose on the news, and the hope is that this incremental production hike won’t put prices (back) in a body bag.
Everything is Pfine
According a WSJ report, Pfizer expects to ship just half of the expected ‘vid vaccines originally planned for this year thanks to early shipments of certain raw materials used in the drug failing to meet standards. Have they tried asking Kodak for help?
This means that Pfizer expect to ship just 50M doses instead of 100M… according to the aforementioned report. Sorry, grandma. For what it’s worth, Pfizer has never actually said they’d ship 100M in 2020… they only planned to provide 50M.
That didn’t stop the stock from falling 2% in intraday trading, and closing down 1% on the day. Unsurprisingly, the news took a toll on the broader market.
According to the Labor Department, first time unemployment claims hit their lowest level of the pandemic, totaling just 712k for the week.
That’s down from 787k last week and significantly below estimates of 780k. Seriously, economists, you had one job.
But, don’t get too excited. Economists believe the tally could spike to more than 800k thanks to discrepancies carrying over from the short Thanksgiving week.
Plus the snitches over at the Government Accountability Office believe the figures have been pretty inaccurate during the ‘vid times. They even went so far as to ask the DOL to give the weekly reports the “Barry Bonds home run record” treatment and brand them with an asterisk.
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